Tesla scouts for its first showroom locations in India, likely in New Delhi & Mumbai
Tesla is reportedly eyeing potential showroom locations in New Delhi and Mumbai as it gears up to initiate sales in India later this year. People familiar with the discussions revealed that the company is exploring sites for showrooms spanning between 3000 to 5000 square feet, along with service hubs in each city.
This move comes amidst Tesla’s efforts to broaden its market reach, especially after experiencing a decline in global vehicle deliveries in the first quarter, marking the first downturn in nearly four years. With the production of right-hand drive cars already underway at its plant in Germany for export to India, the company seems poised to tap into the growing Indian market for electric vehicles.
India recently slashed electric vehicle import taxes to 15%, down from as much as 100%, for automakers committing to investments of at least $500 million and establishing manufacturing facilities in the country. Tesla’s Chief Executive Elon Musk is anticipated to make significant investment announcements during his upcoming visit to India, where he is scheduled to meet with the Indian Prime Minister.
Executives at Tesla have reportedly commenced scouting for suitable locations since last month, engaging in discussions with various real estate developers to explore potential high street and mall sites for their showrooms. The company is eager to kickstart construction to ensure timely opening of the showrooms by 2024.
Despite the promising prospects in India’s electric vehicle market, Tesla is facing challenges in its primary markets of the United States and China, with slower growth rates observed. Moreover, recent reports suggest that Tesla has shelved plans for a budget-friendly car, which was anticipated to drive mass market growth.
While electric vehicle adoption in India remains relatively low, accounting for just 2% of total car sales in 2023, the government has set ambitious targets, aiming for 30% of all new car sales to be electric by 2030. This indicates a significant potential for growth in the electric vehicle segment, presenting an opportunity for Tesla to establish a strong foothold in the Indian market.
The American carmaker will need to navigate through regulatory, infrastructural and competitive challenges to successfully establish its presence and capture market share in India.
